Government retailers join hands to contain price hikes

GOVERNMENT and the country’s business sector have closed ranks amid growing worries over the tough operating environment that threatens that the country is currently facing.

This comes as authorities are ramping up their efforts to shore up the under pressure ZiG and to stabilise the prices of basic goods in the country.

Confederation of Zimbabwe Retailers (CZR) confirmed that they have met Vice President Chiwenga and Industry minister Mangaliso Ndlovu where they agreed to put extra effort in to contain prices increases.

Denford-Mutashu, Confederation of Zimbabwe Retailers president

“The Confederation of Zimbabwe Retailers (CZR) is pleased to inform its members and stakeholders of ongoing constructive engagements between the government and the business community. On Monday VP Chiwenga and Minister Ndlovu held a crucial meeting with representatives from the business sector to address the pressing issues currently facing Zimbabwe’s economy, including the challenges within the retail and wholesale industry.

“During the meeting, both Vice President Chiwenga and Minister Ndlovu acknowledged the difficulties businesses are facing, particularly in light of the exchange rate volatility, rising operational costs, and the growing imbalance between the formal and informal sectors. The government reiterated its commitment to creating a stable and conducive environment for business to thrive, with a focus on addressing key concerns.”

He said the engagements were a critical step toward finding mutually beneficial solutions that will help stabilize the economy and restore confidence in the retail and wholesale sector.

“The CZR welcomes the government’s commitment to dialogue and looks forward to continued collaboration in addressing these challenges.

“Additionally, the CZR remains committed to working closely with our local suppliers and manufacturers in resolving supply chain impediments. We are dedicated to supporting the government’s local content policy and to improving the competitiveness and ease of doing business environment.”

He added that the efforts would help boost local production capacity, reduce reliance on imports, and contribute to the long-term sustainability of Zimbabwe’s economy.

“As these discussions progress, the CZR will keep its members informed of further developments and outcomes. We remain dedicated to representing the interests of retailers and wholesalers and to working with the government to ensure a balanced and supportive business environment.

“We thank the government for its willingness to engage and believe that through these collaborative efforts, we can create a sustainable pathway for the future of Zimbabwe’s retail sector,” Mutashu added.

Recently, the Reserve Bank of Zimbabwe (RBZ) said it was confident that the steps that it was taking would soon achieve the desired results and stem the market shocks of the past few weeks.

“The Reserve Bank of Zimbabwe is making elaborate moves to ensure the stability of ZiG through the ‘back-to-basics’ approach to the country’s monetary policy and execution of the bank’s mandate.

“Back-to-basics means that the central bank will uphold in strict terms its core mandate of ensuring price and currency stability, as well as its commitment to ensure that the money in circulation is fully backed by gold, other precious minerals and foreign currency reserves.

“The temporary shock experienced in the past few weeks on ZiG was primarily emanating from foreign currency supply and demand mismatches, as preparation for the summer cropping season has peaked up,” the apex bank told the Daily News.

“To cover this gap, the Reserve Bank on 19 September 2024 injected US$40 million onto the interbank market to bring the cumulative total for the month of September to US$64 million.

“This intervention will ensure that all genuine foreign currency applications are honoured and reduce the pressure on ZiG.

“This is expected to stabilise prices to the benefit of all Zimbabweans, as traders and other economic players are assured of their foreign currency needs,” the RBZ added.

All this comes after the influential Retailers Association of Zimbabwe (Raz) — whose members are TM Pick n Pay, OK Zimbabwe, Truworths, Edgars, Spar, Food World, Halsteds, Electrosales, Pelhams, Metro Peech and Browne Wholesalers, and Farmbiz — said the shortage of foreign currency was creating major economic challenges in the country.